The rapid rise in the value of bitcoin by $500 on Thursday, led to mass liquidations on the BitMEX crypto derivatives exchange.
The price of bitcoin has shown rapid growth from $6650, peaking at $7145 around 03:00 AM CT. According to data from analytic company Skew, the sudden movement led to the fact that BitMEX was liquidated $23 million in short positions in three hours. This amount of liquidation is significantly higher than the mediocre three-hour indicator on BitMEX of about $1.6 million.
BTC price fell to a minimum below $6500 during Asian trading hours. Asian stock markets were also in the red zone, so it is not surprising that most of the positions on BitMEX were small.
The price of BTC continues to move in tandem with futures attached to the S&P 500. The price fell from $6900 to $6600 on Wednesday amid falling stock markets, which reacted to reports of record declines in customer activity.
Trending: Salvadorans are against buying bitcoins at the expense of the budget
On Thursday, the sentiment remained bearish, but the S&P 500 futures showed a 0.8% increase after European stocks began on a positive note.
The newest Bitcoin price movement was supported by volumes - an increase of $400 to $7000 was conducted by the tremendous amount of purchases since April 2.
The price, however, should close above the upper line of the downward channel. A breakthrough, if approved, is likely to trigger more active purchases, which will lead to a re-testing of current highs of about $7500.
Trending: CoinShares: Bitcoin funds raised $8.8 million in a week
The forecast is going to become bearish repeatedly if BTC consolidates below $6695 - the low of today's green candle with a large volume.